The Cost of an Internally Developed Unidentifiable Intangible Is Expensed

question 24

Multiple Choice

The cost of an internally developed unidentifiable intangible is expensed as incurred.Accordingly, which one of the following costs would be expensed in the year it was incurred?

• A)legal cost of obtaining a patent
• B)cost of improvements with a three-year life made to an asset that is being leased by the company for a five-year period
• C)deferred charges
• D)cost incurred to train management-level employees